(BFM Bourse) – The World Cup is a sporting event but also a friendly one. Beers, pizzas and other chips are an integral part of a football evening with friends. The broker eToro had fun compiling all of these companies specializing in a stock market index with an unequivocal name: the “aperitif” index.
The 2022 FIFA World Cup is in full swing. In addition to the sporting challenge, this competition is also of economic interest for the companies aligned on the match sheet for this 2022 edition. Including those specializing in the production of beers, pizzas and crisps in a context where they rely on the World Cup to boost their sales.
The broker eToro has decided to compile all of these companies in a stock market index with the unequivocal name: “aperitif”. This index examines the shares of the essential companies of these moments spent in front of the TV to follow the sporting exploits of the footballers engaged in the competition.
Beers, queens of the aperitif index
Beer brewers are mainly present in this “aperitif” index. The world number one is Belgian since it is Anheuser-Busch InBev Valued at 95 billion euros, the Belgian brewer has no less than 500 brands of beer, some of which are very well known such as Corona, Stella, Leffe or Budweiser, reminds eToro.
Behind these heavyweights are positioned two other legendary brewers: the Dutch Heineken (20 billion euros) and the Danish Carlsberg (17 billion euros). On the French side, we will not forget Pernod Ricard (48 billion euros), whose emblematic Ricard brand is highly appreciated by a good part of the French population.
As for pizzas, contrary to popular belief, the world number one is not Italian but American. This is Yum Brands (valued at $35 billion) which notably operates the Pizza Hut and KFC brands. In France, the market is dominated by another American: Domino’s Pizza (13 billion dollars). The broker eToro also recalls that the world leader in frozen pizzas is none other than Nestlé (310 billion euros) after the takeover of Kraft Food for 2.5 billion euros.
Regarding crisps, an essential aperitif product, the leader of this crispy market is PepsiCo. Valued at 250 billion dollars on the stock market, the direct competitor of Coca-Cola notably owns the Lay’s brand. Known for its cereals, Kellogg (25 billion dollars) owns the brand of Pringles crisps.
“To drink and to eat”
The majority of these companies that make up the “aperitif” index have substantially the same valuation multiples, between 20 and 25 times earnings, recalls the broker. Heineken is however a bit undervalued at 17 times while Yum Brands is above average at 32 times.
But behind this unit lurk mixed stock market performance. There is “food and drink” insists the broker eToro. With a positive performance since the beginning of the year for the leader of the brewers, AB Inbev, which rose by 1.5%, while Carlsberg is struggling with a loss of 32% of its share price. The best performance can be attributed to Kellogg (particularly the parent company of Pringles), which has risen 12% since the start of the year.
Despite an overall performance of -8.3% since January, the “aperitif” index has outperformed the main global indices, including the S&P 500. the year.
“Companies in the sector have always bet on major sporting events to boost their turnover,” recalls e Toro. Despite the controversies and calls for a boycott, the World Cup in Qatar should be massively followed, not escaping the rule of previous editions. According to the estimates cited by the broker, the 2022 World Cup should be attended by half of the world’s population – or about four billion people. Despite these attractive prospects, the impact of the 2022 World Cup “remains uncertain” for certain companies in this “aperitif” index, eToro analyzes.
An unprecedented problem for the “aperitif” index
“This controversial World Cup has brought to light an unprecedented problem for the companies that make up the “aperitif” index, in particular for brewers”, underlines the broker. EToro cites the case of the Budweiser brewer who was banned from selling his alcohol around the stadiums where matches are taking place, two days before the tournament. This is a “major” difficulty for the official sponsor of the competition. At the foot of its mountain of beer cans, Budweiser therefore offers to offer its stock of beers to the winning country.
“The fact remains that there are, on this subject, two weights, two measures, given that it is still possible to consume champagne, beers and other wines and spirits, but only in the VIP areas of the stadiums. “, quips Antoine Fraysse-Soulier, head of market analysis at eToro.
Sabrina Sadgui – ©2022 BFM Bourse
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